Budget 2014: Andrew Forrest to recommend teens not in work or school should lose welfare

The Federal Government is being urged to strip welfare from teenagers if they are not in school, work or training in next week's budget, the ABC can reveal.

The idea will come from billionaire miner Andrew Forrest, who is finalising a government-commissioned review of Indigenous training and employment.

He will recommend people under 19 - whether they are Indigenous or not - lose their welfare benefits if they are not in school or work.

The Prime Minister's Parliamentary Secretary for Indigenous Affairs, Alan Tudge, says the proposal will be considered.

"There will always be an exemption for particular hardship, but the overall rule needs to be a hard one because we do no-one a service by making welfare an attraction for a person to leave school and go onto the dole," Mr Tudge said.

The budget will include tough earn or learn measures.

The ABC has confirmed school leavers will be forced to wait six months before they can apply for welfare.

Something else the Government is keen to see is more Aboriginal people chasing work further afield.